AAPL -1%: Looks pretty clean so far outside of services as total revs, iPhone and GMs beat. Sept revenue beat Street and edged the ~$114B bogey at $114.5B (+11.7%), back above the top of the 9-11% guide, with iPhone $57.6B (+17.5%) clearing the ~$57B bar and GM of 47.9% (46.9% ex-refunds) ~31bps above Street, but Services missed at +9.8% vs. Street’s 10.3% and the 10%+ bogey, the first single-digit quarter since June 2023 and the end of 12 straight double-digit quarters. No guide in the release, so the Dec GM guide on Ternus’s first call (~5:25pm ET) is the swing for a stock fast money is short.
Fast money was short into this on memory and units, but Services dipping under 10% (first single digit quarter since June 2023) gives bears something to chew on before the guide is even out although bulls will push back and say Services carried 2.5pts of extra sequential FX drag. Now all about whether the Dec GM guide holds ~46%, which comes on the call.
Revenue beat at $114.5B, +11.7%, vs. Street $113.6B (+10.8%) and the 9-11% guide ($111.7-113.7B), and a touch above the ~$114B bogey (+11.3%).
That’s a 1.6% beat on the guide midpoint ($112.7B) vs. 0.7% in June; 12-quarter average 2.0%. It also breaks the run of shrinking midpoint beats (+4.2% Dec-25, +1.8% Mar, +0.7% Jun).